In efforts to ease a housing crisis requiring SR500 million in financing by 2020, the Saudi Arabian Monetary Agency (SAMA) has issued a final draft of regulations of the much-anticipated Mortgage Law, highlighting real estate financing, leasing and supervision of financial companies.

Nasser Nubani, general counsel at management group Capitas Group International, said: “The mortgage law should expand all forms of real estate finance over time. However I don’t expect the Mortgage Law to have a short term impact on project finance.”

“It will take time for the finance and banking industry to assess the implications of the regulations on their project finance risk assessment criteria, as well as the effectiveness of the implementation of the enforcement regulations.

“Furthermore, currently in Saudi Arabia 70% of the housing supply is being delivered by small and medium-sized developers, whose limited access to debt financing is less an issue of the Mortgage Law and more about banks’ challenges with underwriting real estate developers with small balance sheets and limited collateral,” he added.

Cityscape Riyadh will take place from December 9 to 11 at the Riyadh Exhibition Centre, and will comprise a unique mix of specialized activities including an exhibition, three-day meetings, investor round tables, workshops, and the Cityscape Awards for Real Estate.

Hussain Al-Harthy, managing director, National Exhibitions Company, said: “We are delighted to announce that this year’s Cityscape Riyadh is of exceptional interest to all investors, real estate professionals and anyone interested in getting a first-hand look at the rules and regulations concerning market opportunities, exclusive strategies in residential financing, engineering of Public-Private Partnerships (PPP) for affordable housing, and creation of greater economic efficiencies.”

Day One will concentrate on the residential real estate market and consist of a keynote address providing a better understanding of the newly approved Saudi Mortgage Law, reviewing the latest regulations, defining the rights of borrowers and lenders, and clarifying the foreclosure process and oversight of lenders.

Presentations on how to build an efficient mortgage market and a future outlook concerning how the new law will affect the Saudi real estate sector over the short to medium terms will also be included.

In addition, to exclusive information on the latest investment opportunities in the home finance market and identify the feasibility of starting one’s own home finance company, in line with the Government’s plan to meet the demand for housing as part of the national housing strategy.

Day Two will focus on the commercial market and outline winning strategies to acquire project finance, engineer Public-Private Partnerships to finance and develop affordable housing, and project management techniques for creating greater economic efficiencies.

Sameer Kazi, head of Corporate Real Estate Investments at SEDCO Holding said: “The new legislation has a positive impact potential for both lenders and developers. Developers are expected to benefit from the increased liquidity, while lenders will be better able to manage risk.”

“The mortgage law will also have a positive impact on property prices driven mainly by the general demand, given the demographics and anticipated liquidity from mortgage financing. On the other hand, rents would be more driven by the supply-demand balance rather than the passing of the mortgage law,” he added.

In conclusion, Day Three will provide information on maturing the market for greater transparency, improving customer satisfaction, multi-model marketing campaigns for homes, and creating marketing and sales positions in the real estate sector. – TradeArabia News Service